Indonesia: Bosowa to name strategic partner in 1Q09

PT Semen Bosowa expects to get an investor to become its strategic partner in the first quarter in 2009 to develop the company, its chief executive officer, Erwin Aksa, said Monday.

"It is hoped there will already be an investor to join in the company in the first quarter of 2009," he said.

The cement company based in South Sulawesi is currently needing funds to increase its production capacity.

The company actually already plans to conduct an Initial Public Offering as one of the options to raise the money which is expected to reach US$100m.

However "considering current market situation which is not favourable I think the plan will be postponed and so the company will focus on seeking a strategic partner," he said.

Three investors that have expressed their interest to become the company’s strategic partner so far are Lafarge from France that has so far owned stakes in the Andalas cement factory, the Siam Cement which is the largest cement producer in Thailand and YTL from Malaysia.

"The possibility to conduct an IPO is still to be further considered but it will likely be materialised after the company gets an investor partner," he said.

He said in the coming partnership agreement Bosowa would be the majority shareholder and the investor a mere minority stakeholder to help improve the company`s technical operations, management and technology application.